>> pete? >> a lot more room to the upside, psx the most bang for your buck. >> i'm melissa lee. thanks for watching. i'm jim cramer and welcome to my world. >> you need to get in the game. >> he's going out of business and they're nuts. they're nuts. they no nothing. >> i always like to say it's a bull market summary. "mad money," you can't afford to miss it. hey, i'm cramer, this is "mad money," welcome to cramerica can. so call me at 11-800-743-cnbc. oh, we saw it big today, dow sliding 27 points, s&p giving up .35%.

nasdaq losing 6.3%. that something is that the u.s. has become important again. there are plenty of days where we can come in here and note that our s&p purchases are down big because spain has a problem or china's economic growth is slowed. we can keep pondering what happens if the haves and the have not nationings of europe. we can sweat the program of every single disapointing piece of chinese data. or we can recognize that the united states is starting to become the more dominant market on the earth. today is the perfect example.

we woke up to news that once again, some data point from china showed a further decline and that clearly faltered the economy. then that negativity was tossed to europe. will spain take the bailout or not? it's the european spinoff of deal or no deal. by the time we get to our market, i saw this morning at 4:00 a.m., we were looking down substantially. eight of us on world bank survey. i have to admit that when i heard the litany, my first reaction was, oh, here we go again. get ready to baton down the hatches because of the chinese slow down and the european stalemate. i tweeted just that at 4:15. i said here we go again, get ready. but the more i thought about it, the more i realized, are you kidding me? this again? these two headlines? are they even headlines?

when they were first in the news, they were clearly disruptive forces, just terrorizing. they stayed that way for many, many months. but somehow the immediate market is graduated from them. sure enough we opened down all week. but then we spent the rest of the day trading higher. it was a clear win for the bulls. here's why, last year at this time a european debt crisis was really coming to the fore. and here in this country we were called flat foot. we have had so many companies that you know youmtd have to be clubbed viciously by their crisis. we just weren't ready for it. plus at the time the europeans didn't have a clue of about how to deal with the problems. we know they were taken totally by surprise over there because those morons were still raising interest rates when it happened. meanwhile we knew china only as an engine of all global growth

and the decline in their economy was shocking. now let's move one more. as hard as the spanish situation is, the europeans approached it in retrospect brilliantly. with a highly criticized strategy, they chose to kick the can down the road. how many times did you hear the europeans were foolish enough to think that anything could be solved by kicking the can down the road. remember this is always scorned, the strategy of kicking the can down the road. guess what? you know why our stock market could advance during the kick the can period? because the strategy bought time. our industrials pull out of there pretty consistently. in fact all of the -- by the

way, that is why ford and gm, they are still horrible. they didn't take advantage of the kicking down the road. kicking the can bought so much time they don't expect many american companies to use europe as an excuse when they begin their reporting tomorrow. i think they'll just ignore it. plus the ones that did a lot of business in europe, like pbh, they have built a -- remember, with those countries have done quite well and more often than not, those companies are shows double digit gains, i show three cheerings for can kicking. who knows what would happen if anything good came out of europe. same in china. now that china as slowed, how many have been hurt? i found myself talking about it on "squawk on the street" today, when i hear china's weakness,

the ones trading directly with china these days, seven companies, it's crazy how little impact it has anymore. but that again is a combination of two things, one that most u.s. company don't have much of a toe hold in china to begin with, sobering, isn't it? and two that we aren't an industrial -- we can talk a big game and worry about china, but we always bounce back and we bounce back quite quickly because it means so little to the vast majority of our companies. we have taken it back in style. if we leave out this newfound international relevance, kick the can strategy, okay, hey, get back in here. you belong in here. just look at the s&p 500's biggest gainers today, try to

cross reference with china. netfl netflix, second car max up $2.67, 9%. the domestic auto market is up 6.7%. when cliff's national resources, up the $2.20. any bad news this china is only on hopes of rate cuts. marathon pete, marathon petroleum, the refineries, it was up 3.0 $5, they buy it cheap at the well head and sell it inexpensively at the pump. the company may have struck gold

with an anti-alzheimer's drug. it can still pack a punch, 3.5 -- he's going to point that up only .60 when they groek the story. it was midday in the session. do you think it matters now? i mean get read, six pets smart. nothing to do with europe and china. ordination, 3% of gain. eighth u.s. deal jumping 2.7%, despite weakness in earnings. amb amber -- all u.s. companies all rallying despite spain and china. let's face some facts here, these gains are the result of a fantastic kick the can strategy, i know it's been -- kicking the cans allow uses here in the u.s. -- these may be caught in

the maelstrom i saw this morning at 4:30 a.m. the europeans have given up the most bountiful strategy possible. i say china keep up the bad work, and europe keep kicking, and one day we'll be able to asterisk you entirely. >> john in california. >> caller: hey, jim, boo-yah from california. >> what's up? >> caller: we love the way you sleep in cars out here. >> it's a little nasty, your place or mine, you ever had to work? >> i got raitton and i have had it for a while and i just want to know with what's covered up in the future, is ray theon the way to go. >> you what romney talking about

wanting to spend more in defense. if you think that president obama is going to be re-elected. you don't want to be in ratheon, you're going to have to do a little selling. >> caller: i see that united health care purchased 90% of the brazilian health care companies down there, what do you see their stuff going from here and what do you think if romney's elected president? >> it's not as good if romney's elected president. because what happened is the health companies they went all in under obama. they did win. unh goes higher with president obama is re-elected. if you love playing kick the can as a kid, as i did, you should have adored as an investor in an

industrial based company, the kick the can theory, our stocks go higher. coming up , ipo stud or dud. but does this cloud play offer enough profit to bring investors back to the table. find out when you get to know this ipo. and later, up, up and away? amazon has already sold almost 50% this year and google is up over 15%. but could these two market leaders continue to climb? or will they fall back down to earth? don't miss cramer's take. plus, healthy dividend? medical properties trust owns care facilities nationwide, as affordable care makes political headlines. does this mean give your

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you got a real steamer on our hands, red hot ipo coming later this week. the biggest ipo since facebook. but unlike facebook, i want you in 24 one, it's going to give a big pop on the first day of trading. i'm talking about workday that will trade under the symbol

wday. it has spoken about it as if it is the next sales force.com. crm. stock you may think does nothing now, but was hot as a pistol for multiple years, i like work that has a lot in common with other high-tech ipos that have made people a lot of money in 2012. specifically it's a software is a service company, the same business force as sales for.com except that sales force.com provides people with sales and service, workday is focussed on what is known as interprice resource management. instead of buying software and installing it on their own software, they go to cloud-based software. payroll, procurement and employee expense management. it sunds like incredibly boring

back office stuff. by storing the software on the cloud, they no longer need to buy expensive servers. i know this, people it does save companies money. and that's why this company has been so successful at a time when businesses are trying to cut costs and not add workers. the global market is worth 39 billion in 2011. workday should be able to develop off a larger and larger piece of management. they don't save you money, so workday is in a red hot space, it's the first ingreed yentd of a successful ipo, second ingredient, company is growing like a sweet. right now workday has 340,000 customers. even though the companies lose money, last year it's revenues

increased by 98%. and while workday's losses are getting larger over time, i know that's going to be a tough one for you to swallow. they're investing in the business to fuel additional growth down the road. the important thing is that workdays are indeed costs of and -- first six months from february to july. down from 50% from the previous year. plus in the way this quarter, workday's revenues were actually up, more than 100%. 100%. they're accelerating. i don't have any like this. workday was founded by david dufffield, and they ran people soft before oracle bought the company in 2005. p company reminds me of guide

wire. i didn't think this thing was going to stay this hot. it shot up 50% on its first day. a lot of them failed after that, but then rallied 145% in the past year. how about the palo alto networks, it spiked 34% on the first day and it's now giving you a 48% gain since the ipo. by the way if you still own palo alto, bring the register and put it toward workday. how do you play workday, after what happened with guide wire and palo alto, we're going to be a little bit more giving, a little bit more price sensitive. the stock -- i think it's going to price higher than that because the story is so hot. at the mid point of that range, trading would be 18 times earnings, no sales. we got to use sales instead of earnings right here. it doesn't have any earnings

because i know this market wants companies that have this kind of growth. 18 times sales is incredibly expensive. the people -- workday sales are growing at 100% clip and cause managers to salvate at this one. this is the one they keep telling me they want a piece of. sales force.com trades at nine times sales. this is so much more expensive. palo at toe networks trades at 45 times sales. paying 18 times sales to get in on a workday ipo, not only makes sense, it's too darn cheap versus those players, even though it's more expensive versus google or apple. i would pay much more than that given this growth rate. i got to have some parameters, i fear this will double that number and paying 36% sales just doesn't make sense to me.

this is a classic ipo trade, the game plan is very simple. you call your broker, you ask to get in on the workday deal. some of the discount brokers are not going to let you in on it at all. you can buy workday on the after market, which means after it stars 20 times 50. if you can't buy it 27.50 or less, we blew it. if you get -- as i believe this stock could keep climbing, perhaps until it hits the mid 30s. i just don't want you paying in the 30s because i fear your upside will be capped and we'll have a real bad day. come on, jim, this is like all the rest of them. guide wire and palo alto networks, they had the makings of the the ipo. this one is like that.

just remember that those initial public offerings were trades too, not investments unless you can get them at the right place. for workday, that price is $27.50 and not a penny more. we know that the big boys are going to get a meal. so here's the bottom line, we want to own some workday. so that we'll be able to sell it to growth funds desperately needing additional stock to have enough to make up a meaningful position in their funds, as with all of these high fields, we do need to maintain some discipline. as for 20% of sales, i don't think it's -- if it exceeds $27.50, we're going to have to let other people make what will end up being the hard money. >> coming up, up, up and away?

amazon has already sold almost 50% this year and google is up over 15%. but could these two market leaders continue to climb? or will they fall back down to earth? don't miss cramer's take. [ horn honks ]

hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too.

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quarter there will be a group of stocks that bulls say they can do no wrong. which stocks exactly? what we see time after time is that the growth oriented fund managers will keep buying the best performing momentum stocks practically nonstop for the next three months and these guys will take any stocks. how much money these fast growers can make down the road. 2015, 2016, maybe even 2017. i have always hated playing this game. every year there's money to be made by anticipating those moves.

>> i think there's no question that amazon.com and google belong on this list. am son's up for the year. many stocks are at their 52-week highs. they're so obvious they're not going to be ignored. and they'll be doubling down between now and the end of the year if history is your guy. plus you have a nice little reversal that give you a chance to be buying. why don't we structure the sales out.

amazon's like a bulldozer practically putting bricks and mortar retailers out of business everywhere on the earth. plus the company has moved beyond retail. amazon now is a big cloud business, it's selling it's own hardware like the kindle. remember amazon's built this amazing network of winter houses and helps to -- it is the dominant servicer of all internet retail commerce. even though am son controls all commerce in the united states. i think, commerce is -- when you

look at total retail sales, a amaz amazon.com, it's so much more vintd to buy things from amazon. amazon is fabulous, led by it's great banner and ceos. the latest quarter, 28% rise in revenues, the company comes in much better than expected. all those buildings, ale those warehouses, we don't normally worry about margins with am son. the fact that they beat wall street's -- the stock hasn't stopped climbing. how can the managers stop paying for the stocks this year.

the growth oriented managers are -- how much amazon can earn two, three, four years down the road. right now the consensus for amazon to earn in 2013, 2014, is $7.30. that seems a lot less expensive when you think that amazon's traiting at $13.08. you got to look at those out years, that's why they don't seem absurd to these guys. how about the other tech stock that's been anointed toward the fourth quarter. more than 66% of queries in the united states, 75% of search -- now of course we are seeing a

big migration in all of my -- google owns mobile. here in america, more than half of the smart phones run on google's operating system. unlike so many other -- hey, hint, facebook, google call it coming and they have been giving away the android operating system for yearing. google's business sells mobile display ads, last year they captured 51.56% of the market. and google bought motorola. and on top of everything else, google as -- and they own youtube. see all those new tv shows popping up on youtube? i think that percentage goes bigger going forward. and that's just in the going forward business.

goinged is truly a -- international sides of business growing rapidly. google is a thing of beauty. no debt. i am also a believer in management. i remember when co-founder larry pace took over in december of 2011. the guy's done a great job, extreme lining the company. even though google is the $758 stock. but google gets insanely cheap. 20 times the numbers. here's the bottom line, google and amazon have been anointed. so believe me when i tell you that growth center managers are going to keep buying global

management stocks, i -- try to go out three months from now, maybe four, that's the strategy i had voe cat getting back to even and actually having going it. why this way? because funny thing about momentum, if it does reverse itself, if something disappointing happens, these two things become the -- allow you to capture the run to your end, but if something goes awry, you'll be stopped out at a level that will be far higher than where a blown up momentum stock will ultimately fall. >> hey, jim, i want to ask you about netflix, it's an aggressive part of my portfolio, i bought it at $8.65. >> there's a lot of people who have to say that netflix just got too beaten up. i subscribe to the $100 stock.

but i would only do the stocks in calls, i would not do it in common. this could be like green mountain if they screw it up. green mountain being the poster boy of what you don't want to happen. let's go to gary. >> caller: me and my father we follow the market closely and we never miss your show. >> thank you. >> caller: our concern is a company called life lock, you would think that this would be a safe investment. but the ipo so far has been a disappointment. i have two questions, one what happened to the stock and should we buy more, hold or sell? >> look i think that position is the technology stock that's really the consumer play. the consumer as people look at this company, it will not be spending as much on this company as they might in some other security. i met with adt today, that

company has much better security, if you want to mix apples to oranges in the security sector, i like adt. if you can't beat the big boys, you got to join them. amazon and google all week i will have two a day that are the anoints ones. don't move, the lightning surrou roichbround is coming up next. ♪

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it is time for the lightning round. >> are you ready. the lightning round. we'll start with derick in new jersey. >> caller: boo-yah, jim bow. i down joed load your pod tests every day and listen to them during my morning commute. the stock i want you to ask you about is equinox.

>> i don't expect it to come in between now and tend of the year. >> i want to buy eclipse national resources. >> if it goes up again tomorrow, we'll follow up, because you know what? the funding still aren't there. >>let go to phil in wyoming, phil? i would like to know what your thoughts are on dog resources. >> rethey have the -- let's go the steve in wisconsin. >> i'm interested in a again anywheric -- >> we like hot spirit. let's go to david in michigan. >> caller: hey, jim, i'm a big fan how are you doing?

>> i'm good, how are you? >> caller: good. i want to see where navagold. i prefer the gld if you want to own cold. i felt that the company on p friday, on a same storm, i think they're a little aggressive. if gold really plummets, those people will stop drilling. be careful. let's go to bo in kentucky. >> caller: thanks for taking my call, i love your show. that's why i worry about it. let me add another thing e this is a company that people only buy on a takeover basis. i recommend them on a fundamental basis and i don't see any fundamental basis. let's go to greg. >> caller: how do you like crest

core, they basically blew it. now they added this dif denlt and that's krisk but they were not as -- let's say they really made you feel great about the situation before hay should have. let's go to sam in missouri. >> caller: quick question, ofur. >> everybody's selling it off now, all the anticipation is gone, i like the stock, i think's cheap. robin in california. >> let's go to ricky in florida. >> caller: hey jim cramer, i washington want to wish you a big boo-yah. i want to know how do you feel about egarx.

>> that stock doesn't come in and when it does come in, i need you to pull a trigger. can i go to marilyn in pennsylvania. go ahead, marilyn. >> boo-yah to you, jim cramer. >> nice. >> i'm in my 80s, and my certificates of deposit paying 5% are maturing. >> right, they're rolling over. >> what do you think of johnson and johnson? >> think that is ideal. one of the great balance sheets in the world, with tremendous opportunity, new management. i think that j and j is for you. that is the conclusion of the lightning round. >> the lightning round is sponsored by tv ameritrade. get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married,

they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. i don't spend money on gasoline. i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount

that i forget how to put gas in my car. [ male announcer ] and it's not just these owners giving the volt high praise. volt received the j.d. power and associates appeal award two years in a row. ♪ if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools

like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. i wants to introduce you to one of the highest yielding companies left in this market. even if you're hitting a 52-week high today, npw who owns properties ail over america.

company is a bit of a tough history. reduced the dividend in 2008 as so many other investment trusts had to. stock is only breaking out tonight. but it seems like they have really gotten everything in order as the giant distributions now covered by the company's funds from operations, something that wasn't always the case. made a host of acquisitions. close at $11. so let's talk tot edward al da who's the chairman and ceo of medical properties trust. how are you sir? >> i'm doing well. have a seat. >> good to see you. >> it looks like that things are really coming together for you. you have now seem like it's pretty fully invested. >> what's the next thing for you. unline a lot of the other reits

that are out there, we never suffered from a cash flow issue. we went from a ratio of 3.5 times to over 5.5 times now. we raised got a billion dollars in capital in the last four years. we have got about $400 million remaining under our revolver. we've got about $200a we expect for the remainder of this year. so where are we are is that we expect to continue the growth for where we are for this particular year, which is about $800 is in acquisitions. >> it eseems like it does not weigh with the political wind, the debate doesn't seem to matter if romney wins or obama wins. >> if you look at the history of

this down country, it doesn't matter who the president is going to be, we're going to have hospitals regardless of whether it's romneyor whether it's obama. so we're in a very good position throughout the election and beyond. >> are you the only publicly traded guys within this sector? >> we're the only ones that focus exclusively on hospitals. >> are there any hospitals left that would want to do a deal with you? do they understand your model? >> there are a lot of hospitals t market is hurj out there. there's about a half a trillion dollars of available hospital outlets out there. >> the pine like is huge we think that 2013 will be another big growth year for us. >> you didn't deal with september, this was your most recent lelease. it was one for st. vincent health, explain what happens, you guy that hospital, then what are the next steps? how does that become a creedo door your shareholders?

>> that particular hospital we actually have st. vincent's that came up and is actually managing that particular hospital for us. the $400 million acquisition of a company calleder nest health. we did 300 million with the real estate. 100 million dollars from the operating company's stands point. from that particular company, if you look at us being able to acquire all of their real estate. where they can get operating margins in the tie teens and 20s. >> you're being able to borrow money at 5% or 6% which is pretty amazing. but if you did an equity deal, would you be able to borrow at 4% and then really be able to cleanup? in other words make it so that the shareholders would benefit immediately from an equity gift. >> if we did 100% equity deal, we're buying properties at a 10%

cap rate. so our spread is huge, we wouldn't do, like you said, but if we did an all equity deal, it would be from the start. >> can you begin to raise that distribution to where we think it could be 7%, even if the stock goes to 14? >> you talked about that earlier, where we want our payout ratio to be is in the 75% to 80% range, we're almost there now, when we get to that point, the board has said that we'll look at raising the dividend. >> you're the hardest one to follow. i'm trying to get you on the show the whole time, because i don't have any 7% anymore that i can believe in. 7.3% yield, improving balance sheet. more money than you need.

we make a huge deal out of this employment number, don't we? and i can understand that. but when it comes to numbers that should matter to the stock market, it's hard to beat the urge of what we get tomorrow night from alcoa. i know i talked last night about alcoa and their miserable first quarter. because it is the loan standout of the season, it can be a backdrop for at least a day's

worth of chatter. how unfair that this stumble bum set the tabloid. now you may not like how alcoa does, but if it's bad, it's no longer alcoa's fault. that way i will cause my oewn prompt ter of worldwide growth. consider what alcoa plays in. alcoa is the come nant space. and 1 million alcoa screws go into a 747. second aluminum is the usual

material for parts of trucks. alcoa is in all of them. third construction, you need -- commercial construction uses a huge amount of -- it's commercial construction, and this is the worth of business for alcoa. let's alcoa tell us if it's for real. and we have a tremendous amount of switching. there's no really way to judge this stuff. we will get a read on one of the most important seculars that are now in place. finally aluminum, courtesy of steve jobs has become an important part of the technology food chains, that plus bottles and cans and wrap. alcoa also makes the raw part of

the aluminum chain. financial interests and hedge funds dominate that market. in part also because hedge funds keep banging down the stuff. if the chinese could simply cut back their own use of their own dirty smellers and use alcoa's imports. alcoa will give us a huge and important statement about where the world is heading. don't dismiss it. without any chance of the alleged shenanigans we heard way too much about on friday. bob...

oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.

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seconds away on the cut low report, will investments reveal the live profit? and governor rick snyder says no way the -- spent by the uk sda to have employees champblt. everyone's decided it's finished, all i heard today was that apple broke the 50-day moving average. as if somehow the company that steve jobs c